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hire in Colombia

Colombia EOR & PEO

SALARY PAYMENT IN Colombian Peso (COP, $)

CONTRACT LANGUAGES Spanish / English

PAYROLL TAX 21.02% – 27.46%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

Hire and pay talents
with Horizons in
180+ countries

SIMPLE, COMPLIANT HIRING WITH HORIZONS EOR

Hire in Colombia

Horizons provides compliance solutions to ensure your business in Colombia operates in line with Colombia labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, Colombia in a range of industries, from customer service, to accounting services, to software development. We also process monthly payroll, and, as an Colombia Employer of Record, absorb all local employer liabilities. Partnering with our Colombia EOR is the quickest and most cost-effective way to enter the Colombia market.

Note, a Colombia Employer of Record is also known as a Colombia Professional Employer Organization (PEO).

Facts & Stats

EOR Platform

Hire in Colombia, and pay employees through our platform or app.

EOR Cost

Our Colombia EOR solution is the most affordable on the market.

Time-to-hire

Fast onboarding in Colombia, hire in as little as 24 hours.

Contracts

We draft labor contracts compliant with Colombia labor law.

Local Benefits

We administer all mandatory benefits and contributions in Colombia.

180+ Countries

It doesn’t stop with Colombia — we are an international EOR

stay compliant with Colombia labor laws

Employment Laws

Colombia employment contracts

It is not completely necessary to have an employment contract in Colombia, but we strongly recommend that you provide a written contract for every employee. Contracts should be written in Spanish and include details of the employment such as compensation, vacation leave, and so on. Any references to money should be in the local currency of the Colombian peso.

Fixed-term
Probationary periodMax. 2 months (or 1/5 the total contract duration)
Termination notice period0 – 45 days
SeveranceSalary of duration left on contract

 

Indefinite
Probationary period3 months, unless otherwise stated in writing
Termination notice period0 – 45 days
Severance

If employee earns less than 10x the minimum annual salary: 30 days’ salary + 20 days’ salary per year of employment

If employee earns more than 10x the minimum annual salary: 20 days’ salary + 15 days’ salary per year of employment

 

Working hours in Colombia

The typical working week in Colombia is 48 hours long, spread over five or six days. Overtime is paid at a rate of at least 125% of normal pay, or 175% for night shifts.

Hire compliantly in Colombia without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

Public holidays in Colombia

Colombia has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

DateHoliday name
1 Jan, 2024New Year’s Day
8 Jan, 2024Epiphany
19 Mar, 2024Saint Joseph’s Day
28 Mar, 2024Maundy Thursday
29 Mar, 2024Good Friday
1 May, 2024Labor Day / May Day
13 May, 2024Ascension Day
3 Jun, 2024Corpus Christi
10 Jun, 2024Sacred Heart
1 Jul, 2024Feast of Saint Peter and Saint Paul
20 Jul, 2024Independence Day
7 Aug, 2024Battle of Boyacá Day
19 Aug, 2024Assumption of Mary
12 Oct, 2024Columbus Day
4 Nov, 2024All Saints’ Day
11 Nov, 2024Independence of Cartagena
8 Dec, 2024Feast of the Immaculate Conception
25 Dec, 2024Christmas Day

Vacation in Colombia

Employees in Colombia are generally entitled to at least 15 days of paid vacation leave.

Sick leave in Colombia

In general, employees in Colombia receive two-thirds of their normal pay when absent from work through sickness. This is covered by their employer for the first three days, then by the state up to 180 days.

Maternity and paternity leave in Colombia

Female employees in Colombia are entitled to 14 weeks of paid maternity leave, split into two weeks before giving birth and 12 after giving birth.

Male employees in Colombia are entitled to eight days of paid paternity leave.

Tax laws in Colombia

Employers and employees in Colombia are required to pay a percentage of salaries into various social schemes:

  • Health insurance = 8.5% from employers and 4% from employees
  • Workplace risk insurance = Between 0.348% and 8.7% from employers, depending on the nature of the work
  • Family welfare fund = 9% from employers
  • Pension = 12% from employers and 4% from employees

The income tax rate in Colombia is between 0% and 39% depending on income level.

Corporate tax in Colombia is charged at a rate of 32%, but this is set to decrease slightly in 2022.

Health coverage in Colombia

Colombia does have a social healthcare system, so private insurance is not necessary. However, many employers do choose to offer private insurance as a benefit, and private care can be superior to public care.

Employee severance and terminations in Colombia

Termination of employees in Colombia can be difficult, and it is common for employees to take legal action if they feel unfairly treated. To avoid this, it is always best to come to an agreement with employees, which may involve providing a bonus payment.

Employees are generally also entitled to a severance payment upon termination, which equates to one month of salary for every year of service.

hassle-free Colombia compensation & benefits

Compensations & Benefits

Compensation laws in Colombia

The minimum wage in Colombia (in 2024) is 1,300,000 pesos per month for full-time employees.

Minimum Wage Country Comparison Chart (Per month in USD)
Switzerland (Geneva) $4,000
Italy $2,255
Australia $1996
Algeria $156
Uzbekistan $22
Benefit management in Colombia

Setting up a benefits system for your Colombian employees can be difficult if you are unfamiliar with the country and its unique labor laws. If you want to independently set up your benefits system, you can expect it to take weeks or even months, potentially presenting significant delays to your Colombian expansion.

Outsourcing your benefit management process ensures that you fully understand and adhere to the rules, ensuring your compliance and speeding up the process significantly. At Horizons, our Colombia employment experts will help you to find and arrange your benefits, advise on your strategy, and ensure compliance with the law.

Hire in Colombia in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

Generally speaking, the terms “Colombia PEO” and “Colombia EOR” are used interchangeably.

An EOR in Colombia can feasibly hire both local and foreign nationals to work in Colombia.

However, the ability of Horizons to sponsor your foreign national employee in Colombia may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

In most cases, Horizons’ Colombia EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Colombia.

It is possible to get a work visa in Colombia. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Colombia are limited, however—get started today to secure your employees’ visa spot.